State Capitalism: Its Possibilities and Limitations (Pollock, 1941)

by cominsitu

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by Friedrich Pollock (1941)

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We start from the assumption that the hour of state capitalism approaches when the market economy becomes an utterly inadequate instrument for utilizing the available resources. The medium-sized private enterprise and free trade, the basis for the gigantic development of men’s productive forces in the 19th century, are being gradually destroyed by the offspring of liberalism, private monopolies and government interference. Concentration of economic activity in giant enterprises, with its consequences of rigid prices, self-financing and ever growing concentration, government control of the credit system and foreign trade, quasi-monopoly positions of trade unions with the ensuing rigidity of the labor market, large-scale unemployment of labor and capital and enormous government expenses to care for the unemployed, are as many symptoms for the decline of the market system. They became characteristic in various degrees for all industrialized countries after the first world war.

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